                                 CODE OF VIRGINIA

OBLIGATIONS OF NONPROFIT ENTITY (§ 32.1-374)

Prior to disposition of assets, any nonprofit entity shall provide to the
Attorney General written notice, on a form provided by the Attorney General, of
its intent to dispose of such assets, including the terms of the proposal. The
notice shall be given at least 60 days in advance of the effective date of such
proposed transaction in order that the Attorney General may exercise his common
law and statutory authority over the activities of these organizations. The
Attorney General may employ expert assistance in reviewing any proposed
transaction, and such reasonable expenses incurred by the Attorney General shall
be paid by a party to the proposed transaction.
		Within 10 days of receipt of the notice from the entity, the Attorney General
shall cause a public notice of the transaction to be published in a newspaper in
which legal notices may be published in that jurisdiction.
		No later than 40 days prior to any disposition of assets, the nonprofit entity
shall convene a public meeting to set forth its expectations concerning how the
health care needs of the community will be served following the proposed
disposition of assets and to receive comments and respond to questions on the
potential impact of the proposed disposition of assets on the community served
by the nonprofit entity. Notice of the time and place of such meeting shall be
published at least 10 days prior to the meeting in a newspaper in which legal
notices may be published in that jurisdiction.
		Notice to the Attorney General pursuant to this section shall be given for
State Corporation Commission approval sought pursuant to Article 11 (§
13.1-893.1) of Chapter 10 of Title 13.1 and §§ 38.2-203 and 38.2-1322 through
38.2-1328 and subdivision A 1 of § 38.2-4316. Such notice need not be given
where the State Corporation Commission determines, in its sole discretion, that
there is a reasonable expectation that the foreign or domestic nonstock
corporation licensed and subject to regulation under Chapter 42 (§ 38.2-4200 et
seq.) of Title 38.2 or health maintenance organization referenced in this
chapter will not be able to meet its obligations to subscribers or enrollees.
		The provisions of this section shall not apply to any disposition of assets
subject to the provisions of § 38.2-4214.1 or any of the provisions of Chapter
15 (§ 38.2-1500 et seq.) of Title 38.2.

HISTORY: 1997, c. 615, § 55-532; 2002, c. 516; 2007, c. 925; 2008, c. 253;
2018, c. 706; 2019, c. 712.